Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
For purposes of this assume you are turning 62 next month and will have only $288,000 to your name and a need to spend $3,000 per month. Social Security at age 62 would fund $1,700 per month and at age 70 would be $3,076. Would you have confidence to spend all of your retirement savings or create a blend along the way. The ages and relevant SS and implied portfolio withdrawl rate, assuming the portfolio earned exactly the inflation rate over the 8 years would be:
1) $1,700 and 5.4% withdrawl portfolio 288,000 Age 62
2) $1,819 and 5.6% withdrawl portfolio 252,000 Age 63
3) $1,946 and 5.8% withdrawl portfolio 216,000 Age 64
4) $2,082 and 6.1% withdrawl portfolio 180,000 Age 65
5) $2,261 and 6.2% withdrawl portfolio 144,000 Age 66
6) $2,441 and 6.2% withdrawl portfolio 108,000 Age 67
7) $2,637 and 6.1% withdrawl portfolio 72,000 Age 68
8) $2,848 and 5.1% withdrawl portfolio 36,000 Age 69
9) $3,076 and nothing left to withdraw Age 70
There could be a lot of fine points, such as what one could do in the interim with the portfolio portion not to be consumed shortly, for instance if you took option #5 the $144,000 could be invested far more aggressively. What would you do?
1) $1,700 and 5.4% withdrawl portfolio 288,000 Age 62
2) $1,819 and 5.6% withdrawl portfolio 252,000 Age 63
3) $1,946 and 5.8% withdrawl portfolio 216,000 Age 64
4) $2,082 and 6.1% withdrawl portfolio 180,000 Age 65
5) $2,261 and 6.2% withdrawl portfolio 144,000 Age 66
6) $2,441 and 6.2% withdrawl portfolio 108,000 Age 67
7) $2,637 and 6.1% withdrawl portfolio 72,000 Age 68
8) $2,848 and 5.1% withdrawl portfolio 36,000 Age 69
9) $3,076 and nothing left to withdraw Age 70
There could be a lot of fine points, such as what one could do in the interim with the portfolio portion not to be consumed shortly, for instance if you took option #5 the $144,000 could be invested far more aggressively. What would you do?